RES-1989-144RESOLUTION NO. 89R-144
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM TO PRESERVE TAX-EXEMPT
BONDS FOR STATE AND LOCAL GOVERNMENTS.
WHEREAS, the federal, state, and local governments all
share in the responsibility of building and maintaining the
nation's physical and institutional infrastructure and in
providing essential services needed to promote the general
welfare, and
WHEREAS, the federal government has steadily reduced its
responsibility for infrastructure requirements, and has shifted
more and more financial responsibility to states and units o£
local government, and
WHEREAS, shifting the tax burden from the national level
to state and local governments is an illusory savings for
taxpayers and provides no net tax relief, and
WHEREAS, financing state and local government projects
though the issuance of bonds the interest on which is not taxed by
the federal government is critical to allow states and local
governments to exercise the responsibilities entrusted to and
expected of them, and
WHEREAS, in recent years, the U.S. Congress has both
limited the use o£ tax-exempt bonds by states and local
governments, and made municipal bonds less attractive to
significant groups of purchasers, thereby driving up the cost of
financing public service projects, and
WHEREAS, in 1988 the U.S. Supreme Court overturned a
lO0-year old precedent, ruling for the first time that the
Constitution does not prohibit the federal government from taxing
the interest on state and local government bonds, and
WHEREAS, the Supreme Court decision places in jeopardy
the use of tax-exempt bonds by the more than 85,000 units of state
and local government, as Congress seeks new sources of revenue to
reduce the federal deficit, and
WHEREAS, state and local borrowing costs will increase by
an estimated 20 to 50 percent if the interest on tax-exempt bonds
is subject to federal income tax, and this added burden will be
reflected in reductions in public services or by increased state
and local taxes, and
WHEREAS, further restrictions on the use of tax-exempt
bonds will seriously impair the ability of state and local
governments to finance essential services and £acilities,
~ncluding schools, roads, water, sewer, gas, electricity,
t[ansportation and other basic functions, to the detriment of all
c~tizens.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of
the City of Anaheim calls upon Congress and the President to
recognize that the state and local burden of maintaining and
expanding the national infrastructure and providing citizens with
needed basic governmental services cannot be met without
tax-exempt bonds, and to resist all further efforts to reduce the
use of such bonds to finance governmental projects.
THE FOREGOING RESOLUTION is approved and adopted by the
City Council of the City of Anaheim this 25th day of April, 1989.
ATTEST'
CITY CLERK OF THE CITY' OF ANAHEIM
CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the fore§oin~ Resolution No. 89R-144 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 25th day of April, 1989, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Daly, Ehrle, Pickler, Kaywood and Hunter
NOES: GOUNGIL MEMBERS: None
ABSENT: GOUNGIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 89R-144 on the 26th day of April, 1989.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 26th day of April, 1989.
CITY CLERK OF THE CITY OF ANAHEIM
( SEAL)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 89R-144 duly passed and
adopted by the Anaheim City Council on April 25, 1989.
CITY CLERK OF THE CITY OF ANAHEIM